How To Get a Loan Against Fixed Deposit To Finance Urgent Needs?

A loan against a fixed deposit is an optimal solution to continue your investment while managing your financial needs. Some deposits allow premature withdrawal with a specific penalty amount. This gives you access to your investment in case of emergency. 

However, withdrawing before completing your maturity period can cause a loss in returns. A better solution is to opt for a loan against your FD account. Read on to know when a loan against FD is the right option and how to make an informed decision. 

What Is Loan Against FD?

This is a loan where your fixed deposit acts as collateral. This can be a beneficial way to access funds during times of need. Depending on your deposit amount and the bank, you can get up to 95% of the amount as a loan. This makes it a great option to leverage to secure investment. 

Moreover, you continue to earn interest during the loan tenure and investment period. This way you can enjoy dual benefits. 

What Are the Eligibility Criteria?

Anyone with a fixed deposit can apply for this loan, as most lenders have very simple and easy-to-meet eligibility criteria. However, here are a few points you need to know before considering this option.

  • You should be a resident of India 
  • Minors are not eligible for the loan application against FD
  • Hindu Undivided Families can apply for this loan
  • Businesses run by single person or sole proprietors can apply for this loan
  • Businesses run by multiple persons can apply for this loan
  • Five-year tax-saving fixed deposit accounts are not eligible for this type of loan
  • Loan tenure cannot exceed the fixed deposit tenure

Also Read: Callable FD Vs Non-callable FD

Why Should You Consider Such Loans?

Before making any financial decision, it’s important to compare the pros and cons. Here are some reasons why this is a pocket-friendly loan option. 

  • You can get a loan against a fixed deposit without an excellent credit score
  • During the loan tenure, you still earn interest on the FD 
  • In comparison to an unsecured loan, the interest rate is lower
  • Applying for such a loan is a quick and convenient process, as your financial institution may not require any additional verification
  • Getting this loan is easy in comparison to a personal loan because the financial institution already has your FD amount as collateral

Although it is a beneficial solution for quick access to finances, you should consider a few points before going ahead. 

  • You should have knowledge of interest related to the loan and compare it with other available options 
  • You should evaluate the risks of non-repayment as your FD can be liquidated by the bank if you cannot repay
  • Consider the repayment terms like the amount and frequency to avoid the penalty for missing an EMI
  • Some financial institutions may charge processing fees for the loan sanction 
  • You cannot withdraw the fixed deposit amount until your loan is paid
  • Check the charges on foreclosure or prepayment to make a smart repayment plan to avoid paying high-interest 

Using a Loan Against Fixed Deposit Calculator

Before taking a loan, it is important to consider all the terms. As such, you can use a loan against FD calculator to decide on the following:

  • Loan lifecycle
  • Maximum loan amount
  • Comfortable interest rates
  • Total repayment amount  

Using this calculator, you can plan whether a long-term loan or quick repayment is ideal for you. Furthermore, you can compare the interest rate offered by your bank with other options available in the marketplace.

Considering this information, you can weigh the benefits of a personal loan or loan against an FD and decide accordingly. If you are looking for a loan but don’t have a fixed deposit, consider opting for a Fibe Instant Cash Loan.

We offer flexibility with customisable tenures and competitive interest rates. You can apply in just a few minutes online and get the funds instantly to manage umpteen planned or unplanned expenses. Download the Fibe Loan App or log in to our website to explore your options today. 

FAQs on Loan Against FD

Will I continue to earn interest on my Fixed Deposit if it’s pledged as collateral for a loan?

Yes, you will continue to earn interest on your fixed deposit even after you have pledged it as collateral.

What is the process for repaying a loan taken against a Fixed Deposit?

You can opt for an EMI option to repay the loan amount against your fixed deposit across your chosen tenure. 

What is the repayment tenure for a loan taken against a Fixed Deposit?

There is no standard tenure, as it depends on the lender. 

Are there any types of deposits where loans against Fixed Deposits are not permitted?

If you have invested in a five-year tax-saving FD, then you may not be able to get a loan against it.

Difference Between Callable And Non-callable FD And The Best One To Choose

Two forms of fixed deposits provide you with a secure way to grow your savings, i.e., callable and non-callable FDs.  When you open a fixed deposit account, it comes with a specific:

  • Interest rate
  • Tenure

Usually, your funds remain locked in for this tenure so you can earn at the specified rate. However, to give you an option to benefit from liquidity, callable FDs allow to withdraw funds before the tenure ends. While the major difference between a callable and a non-callable FD is the facility of withdrawing prematurely, they have other similarities and differences. 

Callable Fixed Deposit

It is the kind of deposit which allows you to withdraw your funds before completing the maturity period. 

Features:

  • You can withdraw the total amount or a partial amount of your fixed deposit
  • When you withdraw prematurely, financial institutions charge a penalty
  • The penalty is usually in the form of lower interest rates, affecting your payout
  • Pros and Cons
ProsCons
During emergencies, your fixed deposit gives you access to funds for instant liquidity It is an affordable option as it doesn’t have a high minimum requirement to start your investmentYou can withdraw 80-90% of your deposit amount, depending on the financial institutionIt allows you to choose the auto-renewal option so you can stay invested for future financial security You can use the investment to take a loan to finance urgent needs while continuing to earn interest If you withdraw before the maturity date, a specific penalty is chargedIt offers a lower rate of interest as compared to a non-callable FD

Also Read: Latest Post Office FD Interest Rates

Non-Callable Fixed Deposit

With the introduction of a non-callable fixed deposit in 2015, the RBI offers you the chance to increase your interest payout. At the same time, banks and other financial institutions can benefit from a stable source of finance for a predetermined period. 

Features:

  • Non-callable FD accounts don’t allow you to withdraw money until maturity, which is usually for a period of 1 to 2 years. 
  • You are required to invest at least ₹1 crore to start your investment and can go up to ₹5 crores 
  • Withdrawal of your funds is only allowed in these exceptional cases: 
  • Demise of the depositor 
  • Bankruptcy
  • Court order 
  • Liquidation of the business
  • Pros and Cons
ProsCons
The interest rate is high as your lump sum investment is locked in for the tenure You can take a loan against your FD to finance urgent needs You cannot access your investment until maturity, which makes it difficult to address emergencies The minimum amount to start your investment is highYou have less flexibility in choosing your maturity date You cannot utilise the auto-renewal option 

Callable vs Non-Callable FDs: Which One to Select?

Both Indian residents and NRIs can choose to invest in these FDs. Your choice will depend on certain factors like:

  • Your need for liquidity: If you want to access funds instantly in case of emergencies, go for a callable FD
  • Your current savings: If you have an emergency fund or sufficient savings that you can access with ease, go for a non-callable FD for higher interest gains 
  • Your goals: If you need to save a substantial amount for a specific life goal, such as buying a home, choose a non-callable FD 

Now, you can choose the right kind of FD to save for your future. No matter which one you choose, staying invested helps you enjoy higher payouts. If you need funds to bridge gaps and upgrade your life, look no further than Fibe. 

The Fibe Instant Cash Loan can be a smart option as it offers you up to ₹5 lakhs without any need for collateral. You can use the funds without any restrictions and pre close the loan at no additional cost.

What’s more, you can apply online with minimum documentation on meeting simple eligibility criteria. Register on our website or download our Personal Loan App to get a quick loan online. 

FAQs on Callable and Non-Callable Deposit

Are the interest rates higher for non-callable FDs compared to callable FDs?

Yes, interest rates are higher in the case of non-callable deposits. This is because of the fact that you cannot withdraw the investment partially or completely before maturity. 

Do callable FDs offer the same flexibility as non-callable FDs?

Callable, meaning FDs that you can withdraw prematurely, offer you more flexibility since you can access your funds when you need them. However, this does come with certain interest penalties. 

Which type of FD is better for long-term investments: callable or non-callable?

Non-callable FDs have a maturity period of between 1-2 years. Hence, callable fixed deposits can be a good choice for the long term as they come with longer tenures. 

What is the interest rate for callable FD?

The interest rate varies between 2.75% to 8.60% or more, depending on the financial institution. Check and compare the rates before you invest for higher returns. 

Can we take a loan on a non-callable FD?

Your deposit can act as security, depending on the financial institution’s terms and conditions. You can usually take a loan against non-callable fixed deposits. 

Can we break non-callable FDs?

In most cases, you cannot prematurely withdraw your investment. However, you can do so in certain cases related to bankruptcy, death of the depositor, court order, and more.

Everything You Need to Know about Equifax ePORT

A credit score is one of the most reliable financial indicators that can assess an individual’s creditworthiness. The Equifax ePORT portal helps lenders, like NBFCs and banks, access any individual’s credit data. It also provides borrowers’ credit histories. 

It is an online one-stop portal with vast access to individual credit data. This portal contributes to the business-to-business processes for any company, regardless of its scale.

What is Equifax ePORT?

Equifax ePORT is an online B2B marketplace. This allows lenders to have access to a vast database of consumers. Businesses of every scale and size can benefit from this platform. It is a one-stop shop for risk analytics, fraud solutions, scoring, and employment checks. This portal has these segments:

  • Personal Information
  • Account History
  • Public Records
  • Inquiries

Key Features to Know

The Equifax credit report portal is secure and personalised. Here are some of its lucrative features:

  • This is a common entry point and main source of information for businesses of every size
  • Businesses can get access to secure information based on location and character
  • The designated repo and distribution system makes Equifax product info easy to access
  • The platform lets users pick any products from the real-time integrated marketplace
  • It offers faster and easier access to product information with solutions
  • It speeds up response times to requests, which helps your customer support
  • It offers premium features, such as security, customisation, administration, and user preferences

Also Read: Difference Between Cibil And Equifax

Benefits of Equifax ePORT

This portal helps businesses by providing analytics, credit reports, ID verification, compliance support and much more. Some of its features include the following:

  • This single platform has a wide range of commercial products with a large customer base
  • This portal requires little to no manual effort to gain access to quality data
  • With this portal, a business can thrive with better efficiency
  • The inbuilt fraud mitigation tool of this portal blocks fraudulent activities and simplifies user operations
  • Businesses can retrieve data quickly to provide immediate answers to customer questions
  • There is no minimum volume required to access this portal
  • The portal supports consumers’ growing needs, offering full scalability
  • Businesses can access this tool anytime to enhance client support metrics

Steps to Register/Login

You must be a registered Equifax customer to use this portal. Follow these steps first to register and then to log in:

  • Step 1: Visit the official Equifax ePORT website 
  • Step 2: Click on the ‘CLICK HERE to Register for ePORT Today!’ button  
  • Step 3: Choose a method that suits you best on the ‘Contact’ page
  • Step 4: Enter the required details, such as your company name, address (same as CIS), Equifax member number, and security digits
  • Step 5: Note the login ID and password assigned to you
  • Step 6: Log in with your new login ID and password to access the portal successfully

For a lender, the credit report of Equifax is a valuable tool as it can help create its customer base. However, it is no use for any individual customers. For this, you need a credit score calculator, which gives you instant results.

With Fibe, you can easily check your credit score online in just a few minutes. You can also get a credit health report to improve it. Check your score free online and get access to affordable credit!

FAQs on Equifax ePORT

How can I reach out to Equifax for any queries?

There are various options that you can avail to reach Equifax with your inquiry. You can visit their website or reach out to them via their app. You can easily find their support number online or email them. You can also use social media to raise a query.

Can individuals use Equifax ePORT, or is it only for businesses?

No, this portal is not for individual users or consumers. This portal is exclusively for businesses. 

Is Equifax ePORT secure for managing consumer credit data?

Yes, this portal is a secure option to manage customer data related to credit. Various encryptions and authentications protect this portal.

What types of information does Equifax gather?

From consumer information, commercial information, income verification and risk management, Equifax gathers a range of data. An Equifax credit report gathers three types of information, which includes personal, public, and credit account information.

What is considered a good Equifax credit score in India?

If your Equifax score is above 670, then it is considered a good Equifax report in India. If it is near 850 then it would be considered as great.

Form 15G and Form 15H: Differences and What to Use When Filing ITR

Under section 194A of the Income Tax Act, financial institutions deduct TDS on interest if it exceeds ₹40,000 in a year. This limit for senior citizens is ₹50,000. If you rely on this income to manage these expenses, then you should definitely know about 15G and 15H forms. 

This is a self-declaration form submitted at the bank to avoid TDS. This is beneficial for individuals without taxable or formal income. To learn about the uses of this form, eligibility to declare it, how to file it and more, read on.

What are 15G And 15H Forms?

15G is the form you can use if you are a taxpayer under the age of 60 years. Similarly, Form 15H is for senior citizens for non-deduction of TDS on passive income. They are used to avoid TDS from earnings from recurring deposits, fixed deposits and rental incomes.   

What is the Difference between 15G and 15H Form?

Here is a quick overview of how both differ from one another. 

Type of Form15G15H
Type of TaxpayerIndividuals less than 60 years old and a part of a Hindu Undivided FamilyIndividuals over 60 years old or senior citizens
ConditionNet interest income for the year is less than the basic exemption limit of ₹2.5 lakhs as per the old and ₹3 lakhs as per the new regimeNet interest income for the year is less than the basic exemption limit of ₹3 lakhs as per the new regime
Tax liability Zero tax liability for the present economic yearAnnual taxable income for the present fiscal year should be nil

Eligibility Criteria  

Here are general criteria all depositors must adhere to in order to enjoy the benefits of these forms.  

  • You must have income less than the basic exemption limit 
  • You must be an Indian citizen
  • HUFs having ₹2.5 lakh annual income 
  • Senior citizens without any taxable income

Also Read: Check TDS With Pan Card

Example of Who Can Submit These Forms

Here is an illustration of who can opt for tax deductions. 

Age23 Years55 Years67 Years71 Years
Salary—₹1,80,000——
Pension——₹1,00,000—
FD Interest Income₹2,60,000₹85,000₹1,80,000₹3,30,000
Total income before Section 80 deductions₹2,60,000₹2,65,000₹2,80,000₹3,30,000
Deductions under Section 80₹30,000₹45,000₹10,000₹55,000
Taxable income₹2,30,000₹2,20,000₹2,70,000₹2,75,000
Basic Exemption Limit₹2,30,000₹2,50,000₹2,70,000₹3,00,000
AgeLess than 60Less than 60More than 60More than 60
Tax on total income is NilYesYesYesYes
Interest income is less than the basic exemption limitNoYesN.A.N.A.
Eligible to submit Form 15G/15HCannot SubmitYes, submit form 15GYes, submit form 15HYes, submit form 15H

Time of Submission

From the start of the new fiscal year, i.e. in April, you can file this form at any time of the year. 

Things to Remember While Filing 15G and 15H

Here are some additional details important for submitting Forms 15G and 15H:

  • If you are liable for taxable income, do not submit this form
  • If there’s any fraudulent submission, the asses assessee will be penalized under section 277 of the IT Act, 1961
  • This form is not a substitute for an Income Tax return form
  • If you experience a TDS deduction after submitting the form, you can claim a refund
  • NRIs or Non-resident Indians are not eligible for it

Also Read: How to Claim Income Tax Refund on TDS

Sections of Form 15G and 15H

Here are the details you have to provide when filing these forms. 

Sections of 15G form

  • Name
  • Address
  • Contact details
  • PAN
  • Estimated annual income
  • Financial year details
  • The total number of Form 15G for the applicable FY
  • Aggregate Income
  • Place, date, signature of applicant/HUF

Sections of 15H form

  • Name
  • Address 
  • Contact details of the assessee
  • Valid PAN or Aadhaar number
  • Date of Birth
  • Declaration if you have been assessed to tax
  • Approximate income for which assessment is being made
  • Approximate income for the fiscal year
  • Details of Form 15H submitted in the previous year
  • Total number of Form 15H submitted till date
  • Income for which 15H is filled: nature of income, the ID number of investment/account

Part 2 of 15H Form

  • Name, address and contact details of the deductor (person/institution responsible for paying)
  • Unique identification number
  • PAN or Aadhaar number
  • TAN of deductor
  • Amount of income paid for the applicable fiscal
  • The date on which the declaration is received
  • The date on which income has been paid out

While these forms can help you avoid reducing your interest earnings, there may be times you need additional funds. During these times, consider the Fibe Instant Cash Loan and get up to ₹5 lakhs instantly with minimal documentation. To get started, you can download the Personal Loan App or register on our website. 

FAQs on 15G And 15H Forms

What is the limit of 15G and 15H exemption?

For 15G, the exemption is ₹2.5 lakhs, and for 15H, it is ₹3 lakhs. Yet, for people above 80 years old (super senior citizens), it is ₹5 lakhs. This is the basic difference between forms 15G and 15H.

How many times do we need to submit Form 15G?

You need to file the form once a year. 

Is Form 15G required for PF withdrawal if you have been employed for less than 5 years?

Yes, it applies if you have less than 5 years of service record and you plan to make a withdrawal of your EPF balance. Note that you can only use this if your balance is more than ₹50,000. 

Do we need to submit 15H every year?

Yes. If you meet the parameters, then you will need to submit 15G and 15H forms every year.

Paytm Postpaid: All You Need To Know About Its Impact On Credit Score

Paytm Postpaid is an easy option to get instant access to credit. It provides you the convenience of buying now and paying later when paying bills, financing travel expenses, grocery shopping and more. This facility works like a credit card and gives you up to ₹60,000. 

It is important to note that it can impact your credit score negatively or positively, based on whether you default or repay on time. Paytm Postpaid charges include a late payment fee with every delay in payment. In addition, you may need to pay a convenience or platform fee depending on your purchases. 

If you understand how this works, you can avoid such situations and use this service confidently. You can also choose between it and other credit facilities based on your requirements. 

What is Paytm Postpaid Service?

Paytm Loan is a short-term credit service provided to select customers. Paytm rolled out this service by collaborating with non-banking financial institutions. Here are some of its features: 

  • You can use it for both online and offline payments at your convenience at more than 1 crore stores, apps and websites 
  • Paytm provides this facility without any interest rate and minimum convenience fee
  • You need to repay the amount within 30 days; otherwise, it will attract late payment fees of up to ₹750 and may lead to your account getting blocked
  • This service can affect your credit score and your repayment information is shared with credit bureaus 
  • If you default or delay in repaying, your credit score will fall

Does Paytm Postpaid Affect Your Credit Score?

Since it works similarly to a credit facility, it does impact your credit history. Take a look at further details below: 

  • If you default on repayment, Paytm will block your account and restrict you from using further postpaid services
  • The late payment fee depends on the balance you owe and also includes GST
  • Upon multiple defaults for a prolonged period, Paytm has the right to opt for legal actions like:
    • Using collecting agents 
    • Starting legal litigation to collect the money you owe
    • Issuing notice for repayment
  • Multiple defaults can cause debt accumulation

Any default will have consequences. Thus, missing the due date or delaying a payment counts as default. Every default payment will be reported to the credit bureaus and will remain on your credit report for 7 years.

When you default on a post-payment facility, your credit score can decrease by 100 points. If you default several times, it can affect your credit score drastically. It may take a long time to recover from the adverse effect due to multiple default payments, even if you start repaying new credit on time. So, be cautious before you opt for it. 

Steps to Take to Avoid Such Situations

Here are some practical ways you can avoid damage to your credit score when using Paytm postpaid. 

  • Set reminder alerts before the due dates
  • Use it to manage your expenses, but stay away from overspending
  • Compare Paytm postpaid charges with credit card interest rates, late payment fees and more to make an informed financial decision 

By paying bills on time and keeping a check on due dates, you can use this Paytm facility in your favour. However, if you want a repayment window of more than 30 days, consider other options. 

For instance, you can get an interest-free period of up to 50 days with the Fibe Axis Bank Credit Card. Not only does it come with zero annual or joining fee, but it also offers you perks like up to 3% cashback. You can also get benefits like a waiver of fuel surcharge and free access to domestic airport lounges. 

As India’s first numberless credit card, you can also access increased security with this card. 

So, what are you waiting for? Download the Fibe App or register on our website get it now and 

enjoy offers from a range of brands like Swiggy, Myntra, Flipkart and more! 

FAQs on Paytm Postpaid on Credit Score

What are the consequences of not paying your Paytm Postpaid bill?

If you miss the due date or delay a payment, you will need to pay a late fee. Your credit score may also dip. 

Why is CIBIL required for Paytm Postpaid?

There is no CIBIL score required for Paytm postpaid. But if you default, it affects your credit score. 

Does activating Paytm Postpaid impact your credit score?

If you repay on time, i.e. by the due date, Paytm Postpaid doesn’t impact your credit score negatively. In fact, you can use it to build your credit score. 

What credit score is needed for Paytm Postpaid?

There is no credit score or credit history required to access the Paytm Postpaid service.

Credit Cards for Low CIBIL Scores: Easy Approval Choices

One might think getting a credit card for a low CIBIL score can be hard. However, certain financial institutions allow you to access credit cards even if you don’t have a perfect credit score. Through these products, you can also work on your credit score to upgrade your credit card in time. To know more about how you can get these cards, read on.

Credit Card Options

To get a credit card, you need to have a fair to excellent credit score. If you have a poor credit score, you still have certain options to get a credit card and build your credit score gradually. The different types of credit cards you can use to do so include:

Secured Credit Card

Any regular credit card is an unsecured form of credit given based on your creditworthiness. To get a secured credit card, you will need to have a fixed deposit which will serve as a collateral requirement. Here are some of their features:

  • Backed by a fixed deposit
  • Deposit-based credit limit
  • Interest rates vary and you earn interest on your FD

Using your low CIBIL credit card smartly and paying bills on time will positively impact your credit score. 

Also Read: Tips To Improve Credit Score

Credit Cards Issued by Your Primary Bank

If you are just starting to build a credit history, a free credit card from your bank can be a great option. Banks may provide you with a credit card even if you are young, have never handled credit, and have no credit score based on your history with them. Alternatively, it may offer you a credit card even with a low CIBIL score if you have sufficient funds in your account or a long history. 

Unsecured Credit Cards with High Fee

Certain financial institutions provide credit card options with high fees and interest charges. These cards do not require you to have a high CIBIL score. Unlike secured cards, they also do not need you to provide a deposit as collateral. They charge high maintenance fees for extending the facility and mitigating their risk. You can use these cards to improve your score over time and shift to a card with lower charges and additional features.

Also Read: Credit Card Vs Debit Card

How to Improve Credit Score

It is only a stepping stone when you apply for a low CIBIL score credit card. Improving your credit score is a must to get access to more suitable credit cards. The following are some strategies to boost your CIBIL score with credit cards for poor credit scores:

  • Pay your credit card EMIs and bills on time to demonstrate responsible financial habits 
  • Keep your card’s credit utilisation ratio (proportion of the available credit limit to the total limit) below 35%
  • As too many hard inquiries can reduce your credit score, avoid applying for multiple low CIBIL credit cards simultaneously
  • Regularly check your credit score to ensure there are no inaccuracies in your CIBIL report, which can weigh your score down 

Also Read: What is Virtual Credit Cards

Note that credit cards can have higher interest rates as compared to personal loans. You can use the latter to fund your requirements at reduced borrowing charges. If you need instant cash, you can apply for a Fibe Instant Cash Loan and get up to ₹5 lakhs. Get the Fibe Personal Loan App for IOS and Android devices to secure a loan at competitive rates and with minimal paperwork.

FAQs on Credit Cards with Poor Credit Scores

How to get a credit card if my CIBIL score is low?

Certain issuers allow you to get a credit card for a low credit score by pledging your deposits as collateral. You can also get free credit cards from your primary bank or apply for a high-fee unsecured credit card. You can also use these cards to work on your credit score to get a regular credit card with enhanced benefits at lower costs.

What credit card options are available for those with a low CIBIL score?

You can mostly avail of three types of credit cards with low a CIBIL score. These options are secured credit cards, unsecured cards and credit cards offered by your primary bank based on your relationship. 

Do credit cards for low CIBIL scores have higher fees or interest rates?

While unsecured credit cards may have lower interest rates than regular ones, high-fee unsecured cards come with higher fees and charges.

Which credit card is the easiest to obtain with bad credit?

A secure credit card with an FD is an easily attainable credit card which you can use to work on your credit score.

CRIF High Mark Score and Common Errors Solution

You can access your CRIF High Mark free credit report to ensure details of your credit history are accurate. This assures smooth access to credit cards and other forms of credit. Inaccuracies and errors in your credit report can hinder this process. These include:

  • Incorrect personal information
  • Errors in Account
  • Identity theft

It is best practice to check your credit report occasionally to find errors, if any and take the required steps to fix them. To understand whether you have an error or not, you will have to follow these steps:

  • Obtain a copy of your credit report
  • Review it 
  • Gather supporting documents to comprehend whether there is any inaccuracy

How to Correct Errors in Your Credit Report

After you find an error, take steps to fix it with CRIF High Mark. Get your free CRIF High Mark credit report and follow these steps to raise a dispute with CRIF High Mark:

  • Step 1: Log in to the official CRIF High Mark portal
  • Step 2: Share your details on the login page to locate your account linked in the CRIF report
  • Step 3: Select the ‘My Report’ option and click on the ‘Raise a Query’ tab
  • Step 4: Select the dispute category that best describes your issue
  • Step 5: Enter the details of your query or correction required
  • Step 6: Click on the ‘SUBMIT’ button

Once you raise your CRIF High Mark dispute you will receive an acknowledgement from CRIF. Then, CRIF will contact the concerned lender. The course of action will vary depending on whether the lender accepts the dispute or rejects it. 

Upon acceptance by the lender, CRIF will make the changes and notify you. On rejection too, you will be notified. If you are unsatisfied, you can escalate your concern. 

Also Read: How to Increase CRIF Credit Score?

Vital Things to Remember When Filing a Dispute with CRIF High Mark

Filing a dispute is a crucial step towards protecting your financial standing. However, the process requires careful attention to detail to ensure a successful outcome.

  • Please mention your CRIF High Mark Reference Number or Report ID, available in the top right corner of your report
  • The subject line should be your CRIF High Mark Reference Number
  • Share details of your CRIF Account (S. No.) along with your contact information and the disputed account information
  • If there’s an actual error, only then it will be treated as a Complaint or Grievance
  • The rest of the raised dispute will be labelled as Requests or Queries

Upon receipt of your correspondence from the bureau, you will receive a Ticket Number.

Common Errors in Your Credit Report

Here’s a list of commonly faced errors you can easily resolve with this process.

  • Inappropriate Current Balance: Sometimes, the report reflects inaccurate payment instalments
  • Inexact Personal Credentials: Check the spelling of your name, address, DOB and PAN
  • Wrong Account Number: Verify your account number if you have multiple accounts

Also Read: How Cibil Score Is Calculated

Tips to Address Errors

Inaccurate information can have significant consequences on your financial health. Fortunately, there are steps you can take to identify and correct these errors.

  • Check if your balance is updated properly and it is also reflected in your CRIF High Mark score
  • Always double-check your name, address, date of birth and PAN number
  • Confirm if there’s an outstanding loan and if it is mentioned in your CRIF High Mark complaint, too

The idea is to maintain a healthy credit profile and addressing an error is a part of it. It is your job to ensure that lenders receive accurate information about you so that your applications for credit have the best chance for approval. 

In case you are looking to upgrade your life, opt for the Fibe Instant Cash Loan. Get our Personal Loan App or register on our website to get a loan of up to ₹5 lakhs with minimal documentation.

FAQs on How to Correct Errors in CRIF High Mark Credit Report

Why is it important to correct errors on the CRIF High Mark credit report?

Making corrections to the CRIF free credit report will help you with the following:

  • A better credit score
  • Better chances to get a loan
  • Prevent any identity theft
  • Avoid any financial crisis

And above all, you have peace of mind that you are doing well financially. 

What steps should I take if I discover mistakes in my CRIF credit report?

Address the problem with the CRIF High Mark by following these steps: 

  • Log in to the official CRIF High Mark portal
  • Share your details on the login page 
  • Click the ‘Raise a Query’ tab and select a dispute category to describe your issue
  • Enter your query or the required correction 
  • Click the ‘SUBMIT’ button and wait for a revert

What kinds of errors can be fixed on a CRIF credit report?

The CRIF score check may have errors in personal and account information as well as credit limit. You can fix these issues by raising a dispute with CRIF High Mark.

How to rectify CRIF score?

To rectify your CRIF score, you can follow these steps.

  • Step 1 – Go to the CRIF High Mark Website
  • Step 2 – Create an account
  • Step 3 – Review your report
  • Step 4 – Gather supporting documents
  • Step 5 – Submit the dispute online
  • Step 6 – Contact the lender

Pay your bills on time and keep your credit use within the limit to boost your credit score.

How To Send A Chargeback Request To Protect Your Finances

When credit card transactions go wrong, knowing the chargeback meaning and sending a request can help you secure your finances. It plays a vital role in providing security and confidence to you as a cardholder against fraud or incorrect product deliveries from merchants or retailers. 

You can place a chargeback request in case of receiving damaged goods when your cancellation request is not actioned. You can do the same when you’ve swiped your card but have not received any product. This request is valid for a number of transactions. However, this process needs the cooperation of the relevant merchant so you can get the chargeback credited easily. 

Choosing a reliable credit card issuer with a robust dispute resolution cell and faster chargeback processing is also important. This way, you can request a chargeback from credit card companies easily. 

What is a Chargeback Request?

Credit cards come with a lot of perks and benefits. Chargeback is considered one of the vital advantages of safeguarding you from certain frauds related to payments and purchases. It is the process of reversing the payment by the credit card issuer during:

  • Failed product or service delivery: If the merchant has been unable to provide the service/ product for which you have made a payment
  • Product issues: If the delivered product is damaged or is different from what you have ordered
  • Unauthorised payment: If a purchase is made without your knowledge
  • Incorrect transaction amount: If the merchant charges you an amount that does not match the product/service delivered or completed
  • Automatic deduction for cancelled services: If you’ve cancelled a subscribed service and still been charged for it 

Also Read: Charges for Credit Card Cash Withdrawal

How to File For a Chargeback

You can dispute a chargeback with your credit card issuer in the following steps:

  • Contact your credit card provider and give all information regarding the dispute like communication with the respective merchant and purchase-related data. This will help the card issuer in resolving the dispute. 
  • After that, your credit card issuer may ask you to fill out the claim form. You can download the form and submit it through e-mail after filling in the necessary details.
  • You may receive an interim chargeback credit. This is a temporary credit issued by the card issuer to your account until the dispute gets resolved. 

Guide to Chargeback Processing

When you request your credit card issuer to look into an invalid transaction, they may ask for certain details to assess your request:

  1. Merchant details 
  2. Purchase receipt
  3. Communication with merchant

Apply for Lifetime Free Credit Card

After the evaluation, your credit card provider will initiate the interim chargeback credit. Then, the card issuer reaches out to the respective merchant regarding the dispute. The merchant can accept or challenge the chargeback:

If the merchant accepts the chargebackIf the merchant challenges the chargeback
Your credit card provider will transfer the amount deducted from your credit limit back to your accountThe amount is permanently deleted and not included in your credit card statement   The merchant submits the rebuttal form with evidenceYour credit card provider either reverses or upholds the chargeback after evaluating the evidenceIf the decision is in your favour, the chargeback amount credited to you will be permanentIf the decision goes in the merchant’s favour, then the interim chargeback will be reversed, the amount will be included in your statement, and you will have to pay the bill by the due date

In case the merchant does not agree with the card issuing company, it can appeal the decision by involving arbitrators. VISA, RuPay and other card networks may now be involved, and their decision will be considered final. The fee for the arbitration process will be the responsibility of the losing party. 

Also Read: How to Read Credit Card Statements

How Chargeback is Different From a Refund

Refunds can be carried out quite easily and involve minimal processes. They are thus different from a chargeback claim which is a complex procedure involving the credit cardholder, credit card issuer, merchant and even credit card network providers like Visa and MasterCard. 

While the merchant itself offers you a refund, a chargeback is initiated by the credit card company. Similarly, you contact the merchant directly in case of a refund and not the issuing company. Refunds are also much faster than chargeback processes, which may involve up to 4 months or more.

It is essential to understand the filing of a claim for chargeback, meaning you can enjoy a stress-free experience in case a fraud occurs. If you’re looking for a credit card with increased security, you can opt for the Fibe Axis Bank Credit Card. It is India’s first numberless credit card with zero annual or joining fee.

What’s more, you get up to a flat 3% cashback on eligible transactions, waiver on fuel surcharge, free access to domestic airport lounges and a hassle-free UPI payment option. So, what are you waiting for? Download the Fibe App and apply for it now to enjoy unlimited perks.

FAQs on Chargeback

Is chargeback a refund?

Chargeback, meaning the system that allows you to safeguard your finances in case you feel you have been cheated, is different from a refund. It involves contacting the credit card company and raising a dispute through a claim form instead of contacting the merchant directly. 

What is an example of chargeback?

If you’ve cancelled a subscribed service and the service provider still charges your credit card for it, you can file a chargeback request.

How does a chargeback claim work?

You can file a chargeback claim by contacting the credit card issuer, who will then reach out to the merchant. Your transaction details are then discussed, and either accepted or the merchant files a rebuttal. 

What is the chargeback time limit?

Usually, you can file a claim 90 to 120 days from the date of purchase. However, it depends on your credit card company.

Balloon Payment: What It Is, How It Works and Examples

When you search what is balloon payment, the main thing you want to know is whether it can actually make your loan affordable and if it’s the right choice for you. Simply put, a balloon payment is a loan structure where you pay smaller EMIs during the tenure and a large lump sum at the end. This gives you better liquidity in the short term, but it comes with risks if you cannot arrange the final amount. The balloon payment meaning is important to understand because it impacts affordability, total interest paid, and your risk of default. 

What is Balloon Payment? 

A balloon payment refers to a large one-time repayment due at the end of a loan’s tenure. Unlike a regular EMI loan where payments are evenly spread through amortisation, balloon EMI structures keep instalments smaller at the start and leave a big final instalment at the end. This repayment method can suit borrowers who expect a lump sum inflow (like a bonus, asset sale, or maturing investment) but carries the risk of heavy financial strain if not planned properly. 

How to Benefit from Balloon Payments? 

You can consider balloon EMIs in these cases: 

  • If you plan to sell an asset (house, car, etc.) at the end of the tenure and use the proceeds for repayment. 
  • When you expect a future lump sum (bonus, maturity, business payout) to cover the balloon payment. 
  • In the early stage of your career where income growth is expected, lower EMIs now and bigger payment later fits your plan. 
  • If you want lower EMIs for short-term liquidity while managing other financial obligations. 

Process of Calculating Such Payments 

Calculating your instalments and the payment due at the end of the loan’s repayment window may seem complicated, but online balloon payment calculators can help. Here’s how you can understand how they are worked out: 

  • The repayment amount will include the principal amount and interest rate as well as the tenure you are borrowing for.  
  • To calculate your lump sum payment, use the loan’s interest to find the future value of all your monthly payments at the end of the loan’s term.  
  • The difference between your original loan amount and this future value is your payment, which you owe at the end of the tenure. 

Calculate your personal loan EMI 

Balloon Loan Examples 

  • Home Loans / Mortgages: Pay only interest as EMIs and settle the principal with a balloon payment at the end. 
  • Vehicle Loans: Pay up to 50% of the loan in a final balloon EMI while the rest is paid in regular instalments. 
  • Business Loans: Keep EMIs small for cash flow flexibility and repay the large balloon at tenure-end. 

Risk Factors Associated with Balloon Loans 

While balloon EMIs seem attractive, here are the risks you must consider: 

  • Creditworthiness requirement: Only borrowers with strong repayment capacity and income proof qualify. 
  • High final repayment: Balloon payment is usually 50% or more of the total loan, which can cause severe financial stress. 
  • Default risk: Missing the balloon EMI can damage your credit score and lead to asset repossession. 
  • Strict eligibility: Lenders are cautious and approve such loans only for applicants with proven repayment ability. 
  • Refinancing need: Many borrowers rely on refinancing to cover the balloon payment, which may add cost and extend debt. 

Balloon Loans vs Other Loan Types 

  • Amortisation vs Balloon Loans: In amortised loans, you repay both principal and interest in equal EMIs. In balloon loans, you pay smaller EMIs initially and face one large final repayment. 
  • Balloon vs Interest-only Loans: In interest-only loans, you pay only interest during tenure and repay the principal later. In balloon loans, you may repay both principal + interest in smaller instalments but still owe a big balloon EMI at the end. 

A balloon loan is useful if you’re confident about your ability to pay the final lump sum. If not, it can be risky. For hassle-free and predictable repayment, you can opt for the Fibe Instant Cash Loan. Get up to ₹5 lakhs, enjoy affordable EMIs and even prepay early with 0 foreclosure charges. Download the Fibe App today for a smooth borrowing experience. 

FAQs on Balloon Payments 

What is a balloon loan example?  

Housing loans, auto loans and business loans may offer you the freedom to make balloon payments.  

What is balloon payment meaning?  

This repayment structure is when you make small or no payments during the term of the loan and make a large lump-sum payment at the end of the loan’s tenure.  

Is balloon payment a good idea?  

It depends on your financial situation and needs, as it involves a huge payment at the end of the repayment window but gives you more financial flexibility throughout the tenure.  

What is a 5-year balloon payment?  

This refers to when you have to make the final payment against your loan at the end of 5 years. 

Unlock Cash Flow: How Invoice Discounting Can Elevate Your Business

Invoice discounting can help your business get instant working capital. If your business has its cash tied up in unpaid invoices, this facility provides an apt solution. You can use these funds to cover operational costs or maintain a smooth cash flow. You can also choose to invest the acquired funds in assets. To know more about invoice or bill discounting and its advantages and eligibility, read on.

What is Invoice Discounting?

Bill discounting is an invoice financing tool that helps your business get instant cash. You can visit a bank or an invoice discounting platform and get funds against any unpaid customer invoices. The customer pays their dues to the bank directly and the bank charges you a commission for the service. This way, you can maintain smooth business operations by getting your receivables sooner. 

Advantages of Bill Discounting

This tool provides various advantages to businesses in running a smooth operations. Some of these advantages are:

  • Gives you increased cash flow and instant access to cash
  • Speeds up the working capital cycle
  • Remains confidential, as there is no obligation to inform clients
  • Helps your business retain control
  • Allows you to pay interest only on borrowed money
  • May offer dad debt protection 
  • Enables business expansion
  • Monetises receivables stuck in unpaid invoices
  • Reduces dependence on secured bank loans or other types of debt
  • Offers competitive pricing based on your business or personal credit ranking/rating
  • Gets you funds with no collateral required
  • Comes with a simple documentation process
  • Offers flexibility in the use of funds

Also Read: How to Grow Business With Personal Loan

Eligibility Criteria 

Fulfil the following criteria to ensure your business is eligible for this financing option:

Registration and Operation

Your business must be officially registered in India. It should also be operating in India.

Revenue Threshold

Most lenders may ask for a certain amount of revenue or turnover. This amount may vary as per the lender.

Invoicing Track Record

Your business must generate accounts receivables and have a customer invoicing history.

Creditworthy Customers

Your customers should have a good credit record. This determines whether they will pay their invoices on time.

Good Credit History

Your business must also have a good credit record and financial status.

Check Your Credit Score Online

Financial Documents

You may have to provide audited financial statements or other relevant documents to demonstrate the financial status of your business.

Invoice Information

You must provide details about the business invoices you want to discount. The details should include:

  • Customer’s name
  • Invoice amount
  • Payment terms

Invoice Discounting vs Invoice Factoring

In addition to this, invoice factoring is another invoice financing solution that can help your business get working capital. Refer to the following table to learn more about the differences between the two solutions.

FactorsInvoice DiscountingInvoice Factoring
MeaningAccess funds against unpaid invoices and retain controlSell unpaid invoices where the factoring company handles credit control
ControlBusinesses manage sales ledger and customer relationshipsFactoring company manages sales ledger and collections
ConfidentialityFinancing is undisclosed to customersCustomers are aware of the arrangement
CollectionsBusinesses collect paymentsFactoring company collects payments
FlexibilityChoose which invoices to financeMore structured, often involves all invoices
CostsLower fees, more business responsibilityHigher fees, comprehensive service
Bad Debt ProtectionNot providedMay include bad debt protection
CreditworthinessFocus on business credit ratingFocus on customers’ credit rating

When pursuing business endeavours, unpaid customer invoices could tie up the inflow of revenue. Invoice discounting ensures that you have the working capital you need to achieve your business dreams. 

To remove bottlenecks in personal finances, take a Fibe Personal Loan and accomplish your goals. It can provide you with a loan of up to ₹5 lakhs with minimal paperwork and competitive interest rates. Register on our website or download the Fibe App to acquire the funds you need. 

FAQs on Invoice Discounting

Is invoice discounting profitable?

Invoice discounting can be a good solution for any business in need of immediate working capital. 

Is invoice discounting legal in India?

Yes, invoice discounting is legal in India. The factors that establish its legality are:

  • It is governed by the Factoring Regulation Act, 2011
  • Invoice discounting platforms fall under the purview of the PSS Act, 2007 
  • TReDS regulates invoice discounting, executing rules and tools for growth

What are the advantages invoice discounting?

Some of these are as follows:

  • Confidentiality
  • Instant cash
  • Collateral-free finance
  • Businesses have full control
  • Unlock tied-up cash
  • Better cash flow

What are some disadvantages of bill discounting?

A few disadvantages of bill discounting include:

  • High commission charges
  • Overuse can lead to a bad reputation in the industry 
  • Volatile nature due to short-term focus